Avnet Inc (AVT)

Avnet Inc. (AVT) stock plunged by 5.37% due to the release of its second-quarter 2024 financial results on January 31, 2024. The earnings report revealed several key figures, which presents a weak quarterly result:

• Sales Decline: Avnet reported a decrease in sales to $6.2 billion, marking a 7.6% year-over-year decline. Additionally, sales saw a 2.1% decrease compared to the previous quarter.
• Operating Income Drop: Operating income experienced a significant drop, falling by 21% year-over-year to $236.3 million.
• Diluted EPS: GAAP earnings per share (EPS) amounted to $1.28, representing a substantial decrease from the previous year's $2.63, reflecting a 51.3% decline.
• Adjusted Diluted EPS: Non-GAAP EPS stood at $1.40, marking a 30% decrease compared to the previous year's figure of $2.00.
• Electronic Components Margin: The operating margin for electronic components decreased to 4.3% from 4.7% year-over-year.
• Balance Sheet: Total assets increased to $12.99 billion from $12.48 billion as of July 1, 2023.
• Cash Flow: Operating activities resulted in a cash use of $83.6 million for the six months ending December 30, 2023. Avnet's CEO, Phil Gallagher, expressed satisfaction with the second-quarter results, noting that they were in line with expectations. Despite the prevailing economic challenges, Gallagher highlighted the company's effective execution and expressed confidence in its ability to navigate through future quarters while remaining optimistic about growth opportunities.